Loan-against-papers deal

Unless otherwise defined, this refers to the granting of a loan to a hedge fund which, in return, buys tranches placed by the bank directly or via a special purpose vehicle and converted into paper by way of securitization. – In economic terms, the risk in this case remains with the bank. If the hedge fund gets into difficulties, the loan to the hedge fund becomes irrecoverable. – See money loan, single master liquidity conduit, kickback effect, securitization structure.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/